Maluti-A-Phofung Special Economic Zone (M-SEZ)

A Special Economic Zone (SEZ) is defined as a geographically designated area of a country set aside for specifically targeted economic activities, which are then supported through special arrangements (which may include laws) and support systems to promote industrial development. The SEZ programme is a tool that is used by many countries to promote trade, economic growth and industrialisation. The M-SEZ is one of the eleven SEZs which the South African government intends to licence.

M-SEZ is only one of the two projects that is about to receive an interim license as an Industrial Development Zone (IDZ) to expedite the establishment process that is already gaining critical mass. This licence will be converted into a SEZ licence as soon as that legislation is enacted. The Free State Development Corporation (FDC) has applied for funding for the SEZ infrastructure development.

The Tshiame Food Processing Park

The Free State Development Corporation (FDC) is seeking investors and partners to locate into the Food Processing Park in Tshiame, Harrismith, in the Eastern Free State as part of the M-SEZ. Up to 60 000m2 of space is available for development. Opportunities for investment exist in the production of potato crisps, potato flakes, maize grit, cereals and frozen vegetables production.

This project is intended to position Harrismith as an agro-industry hub by creating value-adding capacity and ensure that agri- commodities produced in the Free State are processed locally and exported. The hub will host multinational and domestic companies in the food production sector and will provide for logistical services, warehousing, cold storage and manufacturing facilities to enhance production efficiencies.

The value of this project is estimated at R1.5 billion and is expected to be implemented in phases over a three- year period. The land for this project has already been secured and the feasibility study and business plan have been completed.